MP Materials Sees Unusually Large Options Volume (NYSE:MP)

Key Points

• MP Materials Corp. experienced a surge in call options trading, with 167,164 options purchased, marking a 155% increase from the average volume.
• Following a strong quarterly earnings report with revenue of $57.39 million, the company's stock rose 13.1%, reaching $81.78.
• Several analysts have upgraded MP Materials' ratings, resulting in a consensus rating of "Moderate Buy" and a target price of $74.00.

MP Materials Corp. (NYSE:MP - Get Free Report) saw some unusual options trading activity on Friday. Traders purchased 167,164 call options on the company. This represents an increase of 155% compared to the typical volume of 65,656 call options.

MP Materials Trading Up 13.1%

MP stock traded up $9.49 during midday trading on Friday, hitting $81.78. The stock had a trading volume of 31,571,246 shares, compared to its average volume of 9,888,755. The firm has a market cap of $14.48 billion, a PE ratio of -131.38 and a beta of 2.32. The company has a debt-to-equity ratio of 0.83, a current ratio of 3.60 and a quick ratio of 3.12. MP Materials has a 12-month low of $15.56 and a 12-month high of $84.92. The company's 50-day moving average price is $69.62 and its 200 day moving average price is $44.62.

MP Materials (NYSE:MP - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.03. MP Materials had a negative net margin of 41.87% and a negative return on equity of 9.34%. The company had revenue of $57.39 million during the quarter, compared to analysts' expectations of $44.84 million. During the same period in the previous year, the company earned ($0.17) EPS. The business's quarterly revenue was up 83.6% compared to the same quarter last year. On average, equities research analysts predict that MP Materials will post -0.19 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research analysts recently issued reports on MP shares. Daiwa America upgraded MP Materials to a "strong-buy" rating in a research report on Monday, September 22nd. DA Davidson lifted their price objective on MP Materials from $32.00 to $82.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. JPMorgan Chase & Co. lifted their price objective on MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a research report on Monday, July 21st. Morgan Stanley set a $69.00 price objective on MP Materials in a research report on Wednesday. Finally, Wall Street Zen upgraded MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, MP Materials has a consensus rating of "Moderate Buy" and a consensus target price of $74.00.

Insider Activity

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of MP Materials stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $72.02, for a total transaction of $10,803,000.00. Following the completion of the sale, the chief operating officer directly owned 1,284,409 shares in the company, valued at approximately $92,503,136.18. This trade represents a 10.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 9.50% of the company's stock.

Institutional Trading of MP Materials

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in MP Materials by 7.4% during the 1st quarter. Vanguard Group Inc. now owns 13,662,567 shares of the company's stock worth $333,503,000 after purchasing an additional 942,105 shares during the period. Caxton Associates LLP purchased a new stake in MP Materials during the 2nd quarter worth $132,238,000. Invesco Ltd. boosted its position in MP Materials by 14.3% during the 2nd quarter. Invesco Ltd. now owns 3,033,612 shares of the company's stock worth $100,928,000 after purchasing an additional 378,510 shares during the period. BNP Paribas Financial Markets boosted its position in MP Materials by 76.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company's stock worth $97,200,000 after purchasing an additional 1,264,243 shares during the period. Finally, National Bank of Canada FI boosted its position in MP Materials by 19,314.3% during the 2nd quarter. National Bank of Canada FI now owns 2,013,462 shares of the company's stock worth $66,987,000 after purchasing an additional 2,003,091 shares during the period. 52.55% of the stock is owned by hedge funds and other institutional investors.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals.

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